ONGC Videsh

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Type Government-owned Corporation
Founded 1965
Headquarters New Delhi, India
Key people A.K. Hazarika (Chairman)
Products Oil and natural gas exploration, development, production, transportation and export
Revenue 186.8 billion Indian rupees (US $3.37 billion) (2011)
Net income 26.9 billion Indian rupees (US $485.1 million (2011)
Net equity US $2.62 billion (2011)
Employees 233 (2011)[1]
Website www.ongcindia.com

Overview

Current Global Profile

ONGC Videsh Limited (OVL) is a wholly-owned subsidiary of the Oil and Natural Gas Corporation Limited (ONGC), the flagship national oil company of India[2] and the #3 company in India by market capitalization, according to MoneyControl.com in July 2012.[3]

OVL was rechristened on 15 June 1989 from the earstwhile Hydrocarbons India Private Limited, which was incorporated on 5 March 1965. The primary business of OVL is to prospect for oil and gas acreages abroad, including acquisition of oil and gas fields, exploration, development, production, transportation and export of oil and gas. OVL has grown to become the second-largest exploration and production (E&P) company in India both in terms of oil production and oil and gas reserve holdings.[2]

According to the company's 2010-2011 Annual Report, OVL has participation either directly or through wholly owned subsidiaries/joint venture company in 33 E&P projects in 14 countries namely Vietnam (2 projects), Russia (2 projects), Sudan (3 projects), Iran (1 project), Iraq (1 project), Libya (1 project), Myanmar (2 projects), Syria (2 projects), Cuba (2 projects), Brazil (6 projects), Nigeria (2 projects), Colombia (6 projects), Venezuela (2 projects) and Kazakhstan (1 project) and is actively seeking more opportunities across the world. Out of 33 projects, OVL is operator in 11 projects and joint operator in 6 projects.[1]

Company Report Highlights

OVL's 2010-2011 Annual Report notes that the the company's consolidated production of Oil plus Oil-Equivalent Gas (O+OEG) increased from 8.870 MTOE in 2009-10 to 9.448 MMT in 2010-11, registering growth of about 6.5%, and marking OVL’s highest ever oil and gas production from its overseas assets.[1]

The company's proved reserves as of 1st April 2011 stood at 202.908 MTOE (O+OEG), which next to ONGC, was the second largest holding of proved oil and gas reserves by any Indian Company, and its consolidated gross revenue was up by 21% from 2009-10 to 2010-11, with consolidated net profit up by 29% over the same period.[1]

OVL's consolidated networth was 145,530 million Indian rupees as of 31 March 2011, compared to 116,449 million Indian rupees in 2010.[1]

Global Snapshot

EITI

As of early 2012, OVL was not a supporting company of EITI.[4]

UN Global Compact

As of mid 2012, OVL participated in the UN Global Compact through its parent company ONGC; however, despite OVL's investment in many of the most troubled regions in the world, ONGC reports on its human rights activities within India only.[5]

CSR Review

OVL's corporate social responsibility (CSR) activities are outlined in its 2010-2011 Annual Report[1], and include the following highlights:

  • The company provided scholarships to four Sudanese students for pursuing course in management and engineering courses
  • Contributed US $100,000 to the Venezuelan government as a mark of solidarity and help to the people of Venezuela to recover from heavy rains
  • Contributed US $2 million for sponsorship of South Sudan Special projects to create an amicable business atmosphere in South Sudan to pursue its business plans and strategies in the future

OVL has framed a CSR Policy for achieving the CSR objectives in all its overseas projects/assets: the 2010-2011 annual report stated that a budget of 0.5% of the previous year’s Profit After Tax (PAT) or target as per MOU with ONGC - whichever is higher - would be allocated towards CSR every year from financial year 2011-12 onwards. This budget allocation would be non-lapsable.[6]

External Coverage

  • In addition to its abstention from EITI, ONGC has not endorsed industry standards such as the Voluntary Principles on Security & Human Rights, which would oblige the company to respect human rights with regards to the security of their personnel and facilities.[5]
  • ONGC Videsh is an investor in a gas project in Myanmar where there are well-founded fears, according to Human Rights Watch, that a proposed pipeline will fuel serious human rights abuses.[5]
  • Egbert G.Ch. Wesselink, Coordinator of the European Coalition on Oil in Sudan (ECOS), told Project Monitor in September 2004 that "ONGC Videsh is in business in Sudan because of the war", saying that OVL's takeover of Austrian company OMV's Sudanese assets, the site of widespread human rights abuses, came "at a big war discount". The added that there was "a lot of resentment in Sudan against ONGC Videsh and its business partners."[7]

Global Operations by Country

Azerbaijan

Main article: ONGC Videsh Operations in Azerbaijan

Sudan

Main article: ONGC Videsh Operations in Sudan

Syria

Main article: ONGC Videah Operations in Syria


References

  1. 1.0 1.1 1.2 1.3 1.4 1.5 "Annual Report 2010 - 2011, ONGC Videsh Ltd., Retrieved 9 July 2012.
  2. 2.0 2.1 "ONGC Videsh: Accreting hydrocarbon resources abroad, ONGC Videsh Ltd., Retrieved 9 July 2012.
  3. "Top Companies in India by Market Capitalization - BSE, MoneyControl.com, Retrieved 9 July 2012.
  4. "Stakeholders, EITI website, Retrieved 9 July 2012.
  5. 5.0 5.1 5.2 "Firms cannot be silent on human rights, Human Rights Watch, 12 November 2007.
  6. "2010 Annual Report", CNPC, 2010
  7. "'ONGC Videsh is in business in Sudan because of the war', Project Monitor, 15 January 2004.